- New case filings through February 2009 have increased
90%.
- Attorneys fees to defend a customer arbitration can
be $50,000 to $100,000 or more!
- Most arbitration cases involve the sale of stock, mutual
funds, bonds and annuities.
- Errors and Omissions Insurances costs, deductibles,
and exclusions continue to increase.
- Law Schools Securities Arbitrations Clinics offer FREE
legal representation to investors bringing securities arbitrations
against stockbrokers for claims up to $100,000.
- Registered Representatives are contractually obligated
to indemnify their BD for legal costs and the deductible
in a customer arbitration.
- Legal fees to defend customer claims have an adverse
impact on a BD’s net capital.
- E&O carriers are not always
eager to cover you when you have a customer claim and
often find reasons to avoid paying.
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